Slowly, timidly, and a little begrudgingly, the major music companies are
realizing that digital distribution won't go the way of the 8-track. MP3
opened a Pandora's box of piracy and profit issues that no amount of industry
muscle can shut. For the sake of the artists and composers they represent
- and their shareholders - the majors have recognized the need to jump
into the game with clear strategies and quick reflexes.

It's early yet. SDMI (Secure Digital Music Initiative) is just warming
up, and the rules of the market are being rewritten by high tech and consumer
electronics rivalries. But as music-industry paranoia gives way to aggressive
moves, look forward to cool stuff like custom compilations and multimedia
liner notes. And watch for the reactors to become actors.